HTC to reduce dependency on Samsung for smart phone parts

Samsung is by far the most popular and the largest manufacturer of components for smart phone. The South Korean electronics components giant has a lot of customers who get their chips and memory units manufactured by Samsung, and until recently, Apple and HTC were part of the list. Apple, though, is still the largest customer of Samsung when it comes to manufacturing the processing unit, or the processor, that goes into the Cupertino tech giant’s smart phones, including the new Apple A6 processor in the new iPhone 5.

HTC is also one of the customers of the South Korean company which gets is AMOLED displays and CMOS image sensors. But not anymore, completely. The Taiwanese smart phone manufacturer has decided to stop depending on Samsung for its smart phone’s internal components needs. This may be because the companies are rivals in the same market, the Android smart phone market, and Samsung is winning the market share very easily compared to HTC.

So, HTC has started outsourcing its requirements to other companies, keeping Samsung as just a back up supplier. Apple Insider writes, “HTC has placed orders for CMOS image sensors with OmniVision and Sony, while part of its supply of AMOLED panels now comes from AU Optronics, DigiTimes reported on Tuesday. Those parts were said to have previously been supplied by Samsung.”

HTC does not seem to be completely sure about the new supplier AU Optronics for the supply of AMOLED displays in terms of quantity. Will the new supplier be able to supply the required number of units so that the smart phone manufacturer will be able to be in the manufacturing process? Well, to be on the safer side, HTC has not yet completely stopped buying AMOLED displays from Samsung, so that it can continue manufacturing smart phones even if AU Optronics struggles to supply enough display units.

Source: Apple Insider